/biz/ - Business & Finance

[Anonymous No.54416432]

Insider here. Have something to share. Don't know how I can get this out any meaningful way without repercussions. Posting on here is probably more of a confession..

Binance is unable to redeem their BUSD. As Paxos's bank account with Silvergate has been frozen. Binance was not allowed to access the funds, and feared they would never would be able to access these funds again. Paxos was unable to mint more BUSD, this is known. But also, Paxos is unable to transfer the funds backing BUSD to Binance.

Binance made a bold move while the market still has faith in BUSD. The SAFU fund that was fully in BUSD is being moved into BTC, ETH, and BNB, as announced by CZ.

This spurred the CFTC to announce their case a bit prematurely. This is why you read "because of an urgent, ongoing fraud". This is the fraud. Bitcoin is being pumped by unbacked BUSD.

The endgame is where it gets tricky. Bitcoin's price is meaningfully pumped. If it turns out what brought it up with unbacked BUSD, who will care?

They are currently using options / futures to profit meaningfully from the price action on spot. The idea is if they profit enough, they can wash their hands of the debt.

This is why the CFTC was unusually detailed about the house accounts. Most CFTC reports are not this detailed.

If it ever comes to light, Binance will spin it as essential to preserve the ecosystem. They will have lots of BTC, as that is the main currency that is going into SAFU fund. The entire crypto sphere depends on BTC, and now they own an ever increasing share of it, that just doubled in value. As well as making gobs of cash off of the derivative market.

Binance felt this was their best option. They realized doing nothing made them a sitting duck, and after the US started being aggressive, they saw this as their only option with the most optimal outcome, with more winners than losers.

Will answer anything I can without revealing who I am.

[Anonymous No.54416504]

Do u think CZ will do anything with LUNC?
I feel that if this pumps his bags, he might get it back on peg. I could be wrong.

Though at the moment if you had the choice would you long BTC?

[Anonymous No.54416509]

>>54416432
So sounds like things will be safu if binance pull this off?

[Anonymous No.54416540]

>>54416504
Binance will not do anything with LUNC.
The support they gave to it was purely because they were between a rock and a hard place. They know it's doomed.

I have some BTC and ETH, but I'm staying sidelined to see how this plays out. The price of BTC is going up because of essentially fraud by a near monopoly - I just don't know how it will end.

[Anonymous No.54416573]

>>54416432
When did they buy BTC and ETH? Has the pice of their BTC and ETH gone up enough to where they could sell it for other stable coins Tether USDC DAI etc and be able to cover the BUSD losses associated with the failure of Silvergate?

[Anonymous No.54416575]

>>54416509
It could really go either way.
If they able to do this without screwing over their customers, then they could come out smelling like a rose. If this information gets out there and somebody with more means can publish, who knows. Would people have confidence in a BTC being $28.5k knowing it was fake dollars that it got it there? I honestly don't know the answer.

[Anonymous No.54416588]

>>54416432
This means a BUSD depeg should've already happened. Sounds like more binance fud to me.

[Anonymous No.54416602]

>>54416573
They have been buying since March 13th.
Announced here -
https://twitter.com/cz_binance/status/1635131601884700674

[Anonymous No.54416623]

>>54416432

What makes an Incel larp like this

[Anonymous No.54416631]

>>54416588
The market still has faith in BUSD for the time being. In addition, Binance is the only company that utilizes BUSD in any meaningful way. Not like anybody else can redeem it for $1, like USDC or even USDT.

[Anonymous No.54416636]

>>54416623
Who knows, sounds like shit nocoiner anti crypto fudders would say.

[Anonymous No.54416651]

>>54416432
anything about the ripple case?

[Anonymous No.54416652]

>>54416623
It'd be a shitty larp.
Don't know what somebody who achieve by posting this. Frankly, I wouldn't believe me either.

[Anonymous No.54416666]

>>54416651
Nothing there, I'm afraid. Everything I know is already public - that the case could really go either way.

[Anonymous No.54416670]

>>54416652
april 1st

[Anonymous No.54416686]

>>54416636
Actually hold quite a bit of BTC and ETH. Most of my net worth is in crypto.

Have been selling some of both to be extra careful. Could honestly see this coming out and nobody giving a shit. Some even applauding Binance for doing it.

[Anonymous No.54416689]

>>54416652
Shorting BNB and BUSD. DO NOT REDEEM THE BUSD MY BASTERD FUNDUS ARE SAFU.

[Anonymous No.54416695]

>>54416575
>Would people have confidence in a BTC being $28.5k knowing it was fake dollars that it got it there?
>fake dollars
kek , btc has been pumping off fake dollars since the creation of stables anon , nobody will care about it except the fudfag bobos that will want their shorts to print(and worst case we go in the low 20s again) but thats it.

also do you have any power into getting shitcoins listed on binance ? by power i mean if you know people that have a say in that or that know others that do. this is my question for you

[Anonymous No.54416746]

>>54416695
One thing Binance does with listings is - they are honest on it.

When they say nobody pays for listings, they mean it. Thing is, most projects they do list, they are invested in. If they aren't invested in it, it has to be something with mass retail interest. SHIB for example.

[Anonymous No.54416780]

>>54416746
now i know you're larping because the faggot behind shib shytoshi paid a lot of money twice once to get connections and 2nd to get it listed

[Anonymous No.54416812]

>>54416689
BNB could end up being propped up forever.

I don't know why anybody would want to hold BUSD right now. Even if you feel this post is untrue, they are unwinding it. Best thing you can do is just convert BUSD to USDC if you want to remain in stables.

[Anonymous No.54416820]

>>54416780
If he did, I'm not aware. No project I know that has been listed recently has paid.

[Anonymous No.54416831]

>>54416780
Should add -
Binance DOES accept tokens from projects for 'marketing'. So all of those free promos, projects do pay for that. Maybe that's where you are coming from?

[Anonymous No.54416881]

>>54416666
>Nothing there, I'm afraid. Everything I know is already public - that the case could really go either way.
nobody checking these quads achieved by faggot OP? it's like satanic trips of truth +1 and you fags are just going to ignore it?
checked.

[Anonymous No.54416949]

>>54416540
>Binance will not do anything with LUNC.
Thread ruined. Ya blew the larp, kid.
Should have just said "I'm not sure"

[Anonymous No.54416959]

>>54416949
Sorry if it's not news you want to hear. I don't think anybody in the industry gives a fuck about LUNC. But that's just my perspective.

[Anonymous No.54416998]

>>54416432
>Don't know how I can get this bait out any meaningful way
fuck off >>>/reddit/

[Anonymous No.54417009]

>>54416432
Gay larp. Go back loser

[Anonymous No.54417041]

>>54416998
>>54417009
>>54416949
>>54416780
>>54416670
>>54416636
Fair enough. Didn't think anybody would believe me. Kinda hoped nobody would so I can feel I tried something. But it is what is happening.

Even if you don't believe me, there isn't any reason to hold BUSD anymore. Probably the only way to play this alpha.

[Anonymous No.54417049]

>>54416432
Enjoying april 1st much

[Anonymous No.54417069]

>>54417041
lulz busd just reppeged to usdt price, cope sbf and rot in jail

[Anonymous No.54417106]

>>54416432
How do we profit from this?

[Anonymous No.54417123]

>>54416432
What are you “inside” of exactly?

[Anonymous No.54417171]

>>54417106
There really isn't a way to profit from it, at least that I see. Otherwise, I'd be playing it.

Not really possible to short BUSD unless you long other assets against it, and then wow, you have a bunch more BUSD that isn't worth a dollar.

If you believe that if this gets uncovered, then the BTC price will sink, then that's one way.

But it could come out and nobody will care. As somebody else inferred, USDT is sketchy as fuck, but they always come through on redemptions for multiple exchanges. BUSD doesn't have that check because Binance is the only way that can redeem. And right now they can't.

[Anonymous No.54417181]

>>54417123
I work at a US-based crypto company with close ties to Binance. It's been a rough month.

[Anonymous No.54417225]

The thing is with bitcoin is that the more it pumps even off the back of fake stable coins that generates hype and fomo that gets more real currency into the ecosystem.

[Anonymous No.54417255]

>>54417225
Exactly. That's the bet Binance is taking. That eventually this won't matter.

[Anonymous No.54417274]

>>54417181
Hows the industry holding up? Thinking about slurping some more galaxy digital stock, it's down from 30 something bucks to 3

[Anonymous No.54417367]

>>54417274
The industry is done with tokens. At least in the US. It's what gets companies in trouble.

Tokenization of real world assets has been set back a while because of this SEC shitstorm. Don't know if that means the big banks take it over, or if it's just not going to happen. Big banks have no reason to tokenize.

Expect to see more projects that go for real yield. zk-rollups is unironically big again.

Can't say much to Galaxy stock price action. They are absolutely one of the good players in the space.

[Anonymous No.54417417]

explain to me a simple retard. is there any way binance can their BUSD back?

[Anonymous No.54417444]

>>54417417
Convert BUSD to BTC.
Then US govt can seize BUSD backing funds and Binance will say that's fine we already spent them :))

[Anonymous No.54417481]

>>54416959
I actually believe OP; it all seems quite plausible.

I was under the impression this month's pumping was coming from the liquidity problems with the banks: investors need more places to put their money and I figured BTC was inheriting some of that.

[Anonymous No.54417521]

>>54417367
What do you think will happen with usdc?

[Anonymous No.54417580]

>>54416588
>"As Paxos's bank account with Silvergate has been frozen"
So... The money is there, but it's been frozen. So.. government is the one causing BUSD problem to begin with.

[Anonymous No.54417680]

>>54416666
>Everything I know is already public
>Insider here

Pick one faggot. This thread reeks of the same type of cope and seethe that FTX equity holders had when FTX blew up.

Blaming China man, praying to god that his exchange collapses so you have one more chance to buy in before the bullrun. Not happening. Max pain is up.

[Anonymous No.54417713]

>>54417481
>I actually believe the attention whoring catposting spammer who tried to pretend to be other people here and dox others for fun.
Yeah okay shut this bullshit down for the love of christ if you can't moderate this board then close it.

[Anonymous No.54418126]

>>54417367
will my link bags eventually recover or am I sergey's paypig for life?

[Anonymous No.54418151]

>>54417171
If you truly believed busd to be worthless, surely you could deposit tether/usdc and borrow busd against it? I haven't used Binance Smart Chain in a while but there should be a dapp for that on there.

[Anonymous No.54418261]

>>54416432
I don't think you're an insider, but I give you praise for putting this together. It definitely squares with a lot of what has been happening.

[Anonymous No.54418281]

>>54417181
You say you're in btc and eth but no mention of Link. Why not?

[Anonymous No.54418440]

>>54416432
>They are currently using options / futures to profit meaningfully from the price action on spot.
Zero sum game, where is all that money supposed to be coming from? Cause for damn sure it ain't coming from retail.
The way I see it the whole money laundering ponzi scam called Binance is about to be shut down.
About BTC and ETH, they're both dead anyways.

[Anonymous No.54418484]

>>54418440
the money is moving out of banks, which is ultimately coming from taxpayers through the Fed " bailout"

[Anonymous No.54419315]

>>54418440
It's not zero sum when BUSD is unbacked. It's real dollars sloshing with the fake dollars. Liquidity has disappeared, so it's easier to move the price up. Market makers are getting hosed as well, especially US ones, as they really don't have any recourse. Liquidity is about 50% of what it was pre-SVB, 30% pre-FTX.

>>54418281
I never got on the LINK train.

>>54418151
This is the move.

>>54417680
Everything I know about XRP is the public knowledge. I don't have any insight here.

>>54417580
Yup. 100%. And that's how it will be spun.

>>54417521
USDC is probably the safest of the stablecoins. For me, the stress test that just occurred proved that. When it depegged, I transferred all I could into it.

>>54417481
Appreciate it man. Personally, I think the narrative of Bitcoin as a safe haven was used to sucker retail. No asset manager thinks Bitcoin is the place to be in this macro. Many probably feel like they missed the boat, but On-Chain data showed miners and funds offloading.

>>54418261
Thanks man. Yeah, I'm not like a guy calling the shots or anything.

[Anonymous No.54419391]

>>54419315
So it seems that Binance can only push so high until it can't. There's no way this can hold together beyond what, 30k? 35k? 40K?

[Anonymous No.54419422]

>>54419391
Agree. Binance isn't being brazen and pumping with fake BUSD. It's BUSD that actually exists. They just have no way to get their fiat out.

[Anonymous No.54419460]

>>54419422
But at some point, CZ has to dump it to make BUSD solvent. If he doesn't someone else will. I don't see this as "everyone ends". Eventually, someone is going to have to hold the bag.

[Anonymous No.54419468]

>>54419460
>*everyone wins

[Anonymous No.54419527]

>>54417367
What would cause a reversal of this? I assume actual clear legislation on crypto from Congress, or at least memoranda from the executive branch

[Anonymous No.54419571]

>>54419460
Well, BUSD is going away, as CZ has said. The only people who effected if BUSD is not solvent is Binance. To their credit, they are trying to mitigate the damage to average folks but assuming some of the losses now, and making BTC pump up. People buying in now or shorting are the ones who get stuck with the bag, I suppose.

The government could release that the BUSD funds have been frozen, but there would be such blowback from real people. Binance is very, very good at skirting regulations and PR- if the government said they froze the assets, Binance knows their company will look like the good guys. So the government tries to nail them on trading against users (every CEX does that) and some dubious links to terrorism.

[Anonymous No.54419596]

>>54419527
I scratch my head at this because I have no idea what the endgame for the US crypto companies is. They are clamping down on the good actors which is just giving the bad actors room to thrive.

Coinbase is the most button-down, professional, cover every single base company there is. They take no risk on this shit. And they even got a Wells Notice. If they can't be compliant, I don't know who would be.

Feel like so many politicians are seething at falling for SBF that they are turning to regulate an industry they have no grasp on.

[Anonymous No.54419603]

>>54416432
So basically Terra Luna 2.0

[Anonymous No.54419635]

>>54419596
>Feel like so many politicians are seething at falling for SBF that they are turning to regulate an industry they have no grasp on.
That's probably true, especially since SBF had such a high visibility relationship with lots of them. Do you think the wells notice has substance behind it? As I recall it was vague which is the opposite of what a wells notice is supposed to be.

[Anonymous No.54419683]

BTC was pumping will before March.

[Anonymous No.54419690]

>>54419683
*Well

[Anonymous No.54419724]

>>54419635
Agree, it was so vague. Just personal belief here, but I think the SEC was trying to stoke fear wherever it could.

You could get into some geopolitical thought here that they didn't want capital flight to happen, with more money going into Bitcoin, therefore to Binance. If you were in their shoes, you can see how they might even believe they are protecting retail.

The easier belief for me is that they are trying to regulate an industry they don't quite grasp because FTX made them look real bad. Eventually they will have people in there that understand the industry.

I don't think the Wells Notice will lead to anything negative to Coinbase besides scaring off some retail.

[Anonymous No.54419732]

>>54416540
>Binance will not do anything with LUNC.
>The support they gave to it was purely because they were between a rock and a hard place. They know it's doomed.

Gay larp
what does CZ gain from throwing money in the trash can by burning millions of dollars each month for a "doomed" project if he doesn't has plans for it?

if he sees the project as trash, he can stop the support at any time

[Anonymous No.54419761]

>>54419724
>Eventually they will have people in there that understand the industry.
Not soon, and more pertinently not soon enough. BTC's going to blow pretty soon and a bull market is only going to freak regulators out more because they're going to be fighting the last war and assume this pump is also based off of an FTX/LUNA type situation. The feds sold almost 10k bitcoin on March 14th, and they not only didn't dump the price they couldn't even force it below the daily open.

[Anonymous No.54419802]

>>54419732
PR. Doing something good to help.

Binance supported Terraform Labs, and had a partnership. We can agree on that. By burning tokens, they are trying to help retail, and maybe put a bit of daylight between the two companies. This is more speculation than anything on my part.

I just don't know of any master plan to resurrect the ecosystem. Maybe there is, but I don't see any reason for them to do so. I feel like most people involved with LUNC are people who got burned, not new blood.

Makes more sense to start from scratch.

[Anonymous No.54419828]

>>54419761
Agree with ya here that it won't be soon. All of the legit large US crypto companies are begging for regulatory clarity, and getting nothing. They want to be onside because they know whomever is left standing will do very, very well.

If I'm tinfoil hating, I don't think Coinbase minds this. It scares away so much competition for them.

I think where we differ is that I believe the government dumping 10k Bitcoin didn't have much of an effect because the current price action on BTC is due to Binance vacuuming it up with unbacked BUSD.

[Anonymous No.54419856]

OP is proving why LINK should be all over this, but CZ is too afraid to create a proof of reserves on BUSD. And why BTC is a manipulated shitcoin.

[Anonymous No.54419865]

>>54419732
CZ only does that for general good PR in the crypto space. He isn't throwing away any money because nobody was going to buy that LUNC anyway. The project is worthless.

[Anonymous No.54419909]

>>54416432
>Will answer anything I can without revealing who I am.
Aren't you supposed to be in jail now Sam?

[Anonymous No.54419934]

>>54419909
SBF is a fucking asshole who set back crypto in the US for years. He's the reason we are having all this 'regulation by enforcement' shit, in my opinion.

[Kristy Becker No.54419958]

>>54419422
But if Binance already sold most of BUSD then the us gov that froze the bank will be bankrupting private investors into busd and will end in an astronomical Class action lawsuit.

Or am i wrong?<div class="xa23b"><span class="xa23t"></span><span class="xa23i"></span></div>

[Anonymous No.54419984]

>>54419934
SBF was a glow op retard, Binance and FTX started to sell tokenized stock market actions both from the same swiss company, and Binance got literally threat from multiple nations while FTX was left free to operate them until the end.

FTX is the reason BTC barely reached 69k and ETH 4.7K, motherfucker was doing so much fractional reserve on crypto that he basically created more than 1 year of fake paper BTC that would have otherwise gone to cold wallets.

FTX was also offering "free" ETH withdrawals for retards staking FTT, which is the reason why eth had 50 usd fees during the bullrun.

Connect the dots.

[Anonymous No.54420021]

>>54419958
As far I know, nobody was giving fiat to Binance for BUSD. USDC is the main onboarding for legit companies. Binance via Paxos was the only onboard/offboard to BUSD, therefore the only one effected.

[Anonymous No.54420033]

>>54419984
This is too tinfoil hat for me man.
I think it's more likely that SBF was just a fraud.

[Anonymous No.54420064]

>>54420021
Every BUSD binance is selling has a buyer on the other side so most are probably in the hand of private investors many americans probably.

If they literally keep the paxos bank account frozen then it will only lead to legal chaos as Binance won't even be the bigger victim of the destruction of Binance USD.

>>54420033
You can check all i said and see it's all real, FTX was selling the same tokenized stocks than binance and Binance had to remove them the same week they added them getting multiple threats of at least 20 nations.

And FTX was offering free eth withdrawals for people staking FTT even when eth fees were 50 usd per tx, insane business model, some retard buys 3k in FTT, stake them in your exchange and you give them unlimited free 50 usd per tx ETH withdrawals.

They were paying the insane eth network fees with the FTT money, which bottlenecked ETH

[Anonymous No.54420073]

>>54420033
>>54420021
Without FTX, BTC would have reached at least 180k and ETH 8k

FTX removed an entire year of BTC being bought and bottlenecked eth to 50 usd fees per tx.

[Anonymous No.54420135]

>>54420064
Oh, then we are on the same page, I think. I thought by glow op you meant it was like, SBF was groomed to discredit the industry.


I'm saying BUSD is unbacked right now. Doesn't mean it wasn't backed before, or won't be backed in the future. Binance is trying to remove it from the system while keeping it at parity. They are doing this by pumping up BTC, and gaming the preps / options to make enough to cover the shortfall, and get the unbacked BUSD tokens off the market.

If there is legal chaos, I mean, what jurisdiction are they going to legally come after Binance in? If they can pull off that BUSD is $1 until it unwinds, then who is legally effected?

I cannot say if they knew this was coming, but think about when Binance discontinued USDC and said all USDC deposits will be converted into BUSD. This was before they had banking access cutoff. I always found that weird, but makes me think they were prepping for this.

With FTX, yeah, you are absolutely right on all that. The tokenized stocks + the staking.

[Anonymous No.54420169]

>>54420135
BUSD is not from Binance it's from Paxos which is from New York, so the new york regulators are getting sued the shit out of reality if they let mostly retail get rekt.

>I cannot say if they knew this was coming, but think about when Binance discontinued USDC and said all USDC deposits will be converted into BUSD. This was before they had banking access cutoff. I always found that weird, but makes me think they were prepping for this.

Yes but the problem with CZ is not that he is shaddy it's that he is realistic and tries to do things the kosher way, but you can't even go to take a shit in the normie financial system without regulators doing something.

At the end of the day if CZ had balls he would fork DAI and back it on ETH and ETH only since it's deflationary anyway and release a new BUSD outside the system.

It's funny that everything that went down to shit in crypto was trying or larping they were trying to do as the regulators wanted, it's the shaddy fuckers the ones that were the most legit.

CZ is the bizarre area were he is legit and trying to be more legit but every time he gives an inch to regulators they want more from him.

They actually respected him more when he was the ceo of a "stateless exchange", it's funny desu.

[Anonymous No.54420194]

>>54416575
Bitcoin is real
Dollars are fake
Who cares that one BTC seller was swindled and left holding a giant bag? The demand for BTC remains real.

[Anonymous No.54420228]

>>54420169
Oh, I think I see the disconnect.
Binance wants to get the money out of NY. Paxos would like Binance to get the money and be done. But the account is frozen, and they cannot. I don't see why NY regulators would get sued here. If BUSD as being considered a security (lol), then it's just an investor that got screwed. See what you are saying though. If BUSD loses peg because of an enforcement announcement that BUSD funds are frozen, retail would lose their shit. As I said earlier, Binance would not be viewed as the bad guys in this scenario.

Agree with ya on CZ. I feel he was trying to do things kosher. Current path kinda supports that. Binance is trying to remove BUSD from the system without effecting anybody. It's not hard to see how Binance could see this is as the 'least bad' option provided it doesn't blow up.

[Anonymous No.54420251]

>>54420194
The demand for BTC is real.
The current level of demand for BTC, at this price, is not real.

[Anonymous No.54420260]

So, is this a lie?

"1/ Statement from Paxos on Silvergate Bank: Paxos has virtually no exposure to Silvergate. Last week we discontinued SEN connectivity and wires into our Silvergate account and have continued processing outgoing withdrawals."

PaxosGlobal twitter on 9th of March

[Anonymous No.54420264]

>>54416432
Does CZ / Binance have any opinion on Kaspa / KAS?

[Anonymous No.54420301]

>>54420228
>I don't see why NY regulators would get sued here. If BUSD as being considered a security (lol), then it's just an investor that got screwed

>The SEC refers to the Howey Test to determine whether an investment contract exists and a security is being sold. According to this test, an investment contract exists if 1) there’s an investment of money, 2) in a joint enterprise, 3) with the expectation of a profit, 4) which is obtained through the efforts of others.

>3) with the expectation of a profit

There is 0% chance in a real class action they can defend a stablecoin that imploded mostly on retail as a security, they are getting assraped legally if BUSD goes down while Binance managed to get out, only Retail will go down and they will get a massive class auction lawsuit

[Anonymous No.54420306]

>>54420260
It is a half-truth.
Paxos, the company, likely did not have exposure to Silvergate.

Paxos did hold fiat backing stablecoins at Silvergate as well as Signature. Maybe I should have lead with Signature because there is a bit more press on those ties, as well as their shut down being way, way more questionable.

https://www.binance.com/en/feed/post/299299

[Anonymous No.54420333]

>>54420264
I don't like...know the guy personally, haha.

>>54420301
Totally doesn't pass the Howey test. Absolutely. It just provides enforcement cover for the time being. But, I can't think of a situation where a class action suit against a regulator for shutting down a company they deemed as criminal succeeded.

[Anonymous No.54420638]

>>54416432
>Will answer anything I can without revealing who I am.
Is it because certain people aren't playing certain games. i am dead fucking serious. tell me they can't mint shit because a certain amount of Americans aren't playing a certain type of game where the RNG of that game and the immediate reaction of the player throughout any session or match is no longer putting up with certain bullshit.

please, i want to believe i can finally sweat and tryhard for a good cause without worrying that my in-game actions are being translated to map pathfinding codes that generate a bunch of reddit elitists working for major gaming companies with the sole interest in profit, no care whatsoever to the betterment of gaming.